Key workplace changes for New York employers in 2026

New York State lawmakers had a busy 2025 and ushered in several important new workplace-related measures that will take effect in 2026. As New York employers look toward the new year, they should keep the following key changes in mind:

• January 1, 2026 – Minimum wage and salary threshold increases – The minimum wage rate in New York will increase to $17 per hour in New York City, Nassau, Suffolk, and Westchester counties and $16 per hour in the rest of the state. Additionally, the exempt salary threshold for administrative and executive employees will increase to $66,300 per year in New York City, Nassau, Suffolk, and Westchester counties and $62,353.20 per year in the rest of the state.
• Now in effect – Ban on “employment promissory notes” – The New York Trapped at Work Act, which took effect on December 19, 2025, bans “employment promissory notes” and similar provisions used as a condition of employment. Employers are now prohibited from requiring workers or job applicants to sign agreements that obligate repayment if a worker leaves before a stated time period. The statute appears to prohibit, at least on its face, agreements that allow employers to claw back bonuses as a condition of employment, which could certainly have a significant impact on Empire State employers. We anticipate that the New York Department of Labor will issue guidance clarifying the law in 2026.
• February 22, 2026 – New York City earned safe and sick time amendments – New York City employers will be required to provide, upon hire and annually thereafter, at least 32 hours of immediately available unpaid safe and sick time. In addition, uses of sick and safe time will expand to include public disasters that trigger business closures, school or child care closures, and directives to remain indoors that prevent employers from reporting to work, as well as workplace violence, care for a minor child or care recipient, and attendance at certain proceedings. Further, the requirement to provide employees with up to two temporary schedule changes per year under the City’s Temporary Schedule Change Act (TSCA) will be eliminated and events previously covered by the TSCA will be included as permissible reasons for safe and sick leave.
• On the horizon – In June 2023, New York legislators passed a bill that would have banned virtually all non-compete agreements across the state, which was ultimately vetoed after Governor Hochul and legislators could not reach a compromise on a carve-out for certain high earners. In 2025, the New York Senate passed a revised bill that would ban most employment non-compete agreements for “covered individuals” earning less than $500,000 per year and health-related professionals. The bill is currently pending before the New York State Assembly. 

In light of these updates, New York employers should review their employment agreements, wage rates and payroll processes, and sick leave policies to ensure compliance. We will continue to monitor developments regarding the Trapped at Work Act and New York’s non-compete legislation.